Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia

Research Article

Tax Dispute Analysis of Incorrect VAT Payment on Offshore Royalty viewed from the Ease of Administration Principle (Case Study of PT X)

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  • @INPROCEEDINGS{10.4108/eai.5-8-2020.2301223,
        author={Iman  Santoso and Mikha Grinelda Ningrum and Milla Sepliana Setyowati},
        title={Tax Dispute Analysis of Incorrect VAT Payment on Offshore Royalty viewed from the Ease of Administration Principle (Case Study of PT X)},
        proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020,  5 - 6 August 2020, Purwokerto, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2020},
        month={10},
        keywords={value added tax royalty intangible taxable goods; incorrect tax settlement; administrative sanctions; tax dispute; overbooking},
        doi={10.4108/eai.5-8-2020.2301223}
    }
    
  • Iman Santoso
    Mikha Grinelda Ningrum
    Milla Sepliana Setyowati
    Year: 2020
    Tax Dispute Analysis of Incorrect VAT Payment on Offshore Royalty viewed from the Ease of Administration Principle (Case Study of PT X)
    ICBAE
    EAI
    DOI: 10.4108/eai.5-8-2020.2301223
Iman Santoso1,*, Mikha Grinelda Ningrum1, Milla Sepliana Setyowati1
  • 1: Department of Fiscal Administration, Faculty of Administration Science, University of Indonesia
*Contact email: imansa1969@gmail.com

Abstract

The occurrence of selling and buying transactions cause every companies to do their VAT obligations. Tax reported by PT X which appear to be wrong can be subdued by overbooking, therefore PT X had to bear administrative sanctions. The purpose of this research is to analyze basic considerations from Directorate General of Taxes in making regulations regarding the incorrect transfer of Taxable Services from outside the custom territory which cannot be overbook and analyze whether the administrative sanctions given to taxpayer are appropriate, with Ease of Administration principle in deliberation. This research used a qualitative approach with in-depth interview and literature study for data collection. The result of this research concludes that the primary consideration Directorate General of Taxes made regulations concerning the incorrect transfer of Taxable Services from outside the customs territory is because Intangible Taxable Goods and Taxable Services from outside the customs territory are susceptible to being used by Taxpayers for the purpose of avoiding tax and the Government’s control are not fully reliable. Because the regulations do not allow to do the overbook, alternative ways taken by PT X to resolve the incorrect transfer of tax is restitution, which causes administrative sanctions. With that being said, administrative sanctions that occur as a result of wrong transfer of tax do not fulfill the Ease of Administration principle.